We are back from our jaunt to Benalla in rural Victoria and pictures of our 90-year-old investment property are on the Facebook page here: https://www.facebook.com/photo?fbid=820234823445027&set=pcb.820234863445023
What is LVR?
The mortgage industry is a wide, wondrous world with a language all of its own. One of the many acronyms bandied about is ‘LVR’, which stands for ‘loan-to-valuation ratio’. Here’s what it means:
When you are working out what amount you can borrow to purchase a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the loan-to-valuation ratio (LVR) is one of the most important considerations.
In the simplest terms, the LVR is the percentage of the property’s value, as assessed by the lender, that your loan equates to. So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80% of the property value, making your LVR 80%.
LVR is important because different lenders and loan types have different maximum LVRs, and some lenders will only lend up to a certain LVR for small properties or properties in certain areas.
Most lenders will finance 80% LVR, or higher with lenders’ mortgage insurance https://www.mortgageandfinancehelp.com.au/how-to-buy-without-a-20-deposit (LMI), while alt doc loans https://www.mortgageandfinancehelp.com.au/first-home-buyer-news/how-buy-home-when-youre-self-employed/ may be limited to 60% LVR without LMI.
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Interest Rates, where to now?
The RBA kept the cash rate unchanged at 4.10% on Tuesday 3rd October 2023. This is the fifth time in the last 16 meetings that the cash rate has not gone up.
I am receiving many refinance enquiries as borrowers look to ease the pressure on the family budgets. The best rates I have are below 6%.
Property values and other statistics
Darwin property values have increased by .1% during the last month. This result is ahead of Hobart. This month units are still doing better than houses.
According to CoreLogic the last 12 months show Darwin property values as a fall of 2.2%. This result sits behind Perth, Adelaide, Brisbane, Melbourne and Sydney but ahead of Canberra and Hobart.
Palmerston and Darwin City have again outpaced the Northern Suburbs.
Darwin is the cheapest capital to buy property in with a median value of $493,000.
Property Investment
Interest rates for property investors can be obtained at less than 6% on LVR of 80%
Rents in Darwin have increased by 2.1% over the last 12 months. Darwin and the wider NT are leading the pack on gross rental yields.
Nationally the rental vacancy rate is 1.0% which is a third of pre Covid numbers.
Read the CoreLogic Research in full here: https://www.corelogic.com.au/our-data/corelogic-indices#daily-indices
Please don’t hesitate to contact me should you have an enquiry.
Regards,
Nick Kirlew | Mortgage Broker | 2/6 Montoro Court Larrakeyah NT 0820
Phone: 0447 499 794 | Email: nick@arafin.com.au | Web: arafin.com.au
Facebook:www.facebook.com
Arafura Finance Brokers